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Fredriksen doubles up on Flex’s LNG carrier orders

Shipowners proving coy on newbuilding deals while they await refund guarantees and strive for that competitive edge

Four LNG carrier newbuilding berths have been secured by John Fredriksen’s interests for his gas shipping vehicle — Flex LNG — as the sector’s order tally climbs in the first quarter.

TradeWinds understands that Fredriksen is behind two vessels confirmed by Hyundai Heavy Industries early this week.

But in addition, the Norwegian shipping magnate is also the name that signed up to a pair of vessels at DSME last week.

The orders will bring Flex's owned LNG carrier fleet to 10, with the company's chartered-in vessels adding to this tally.

Oslo-listed Flex did not respond to requests for confirmation and clarification.

Last week, TradeWinds reported that DSME had notched up two LNG carriers for the account of Pantheon sister company Alpha Shipping & Trading, which has confirmed a pair of VLCCs at the South Korean yard in the past few days.

Sources close to the Kanellakis-controlled outfit price the M-type, electronically controlled, gas-injection (ME-GI) newbuildings at around $185m each. They indicate that the ships, which mark a return to the LNG sector for the Greek owner, have been contracted without employment.

During the past 10 days, all three of South Korea’s big shipbuilders — DSME, HHI and Samsung Heavy Industries — have announced LNG carrier orders without naming the parties contracting the ships. This has prompted a flurry of talk about the companies behind these new contracts.

Aside from DSME and HHI, SHI also revealed it had landed an order for one LNG carrier newbuilding, with an option on a second.

TradeWinds has learned this business is for a Greek shipowner, which is believed to be Christos Economou-controlled TMS Cardiff Gas. The order was signed in January.

One newbuilding market observer said the delay in yards securing refund guarantees for vessels may be a factor in the time lapse between orders being signed with owners and official announcements emerging from the shipbuilders, along with owners’ reluctance to put their names to new contracts.

Brokers also said competition appears fierce among owners looking to supply vessels for what is widely perceived to be a looming shortfall of LNG carriers in the period up to 2020.

LNG carrier orders announced in the first quarter of this year already are stacking up at more than half the total number of ships signed last year, although it is not entirely clear which contracts were signed at the close of 2017.

Aside from four vessels for Flex, Cardiff has also inked a similar number, Alpha and BW Gas have ordered two, Sovcomflot (SCF Group) has secured one — concluded in late December — and Maran Gas Maritime has penned one plus a floating storage and regasification unit.

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Fredriksen doubles up on Flex’s LNG carrier orders

Shipowners proving coy on newbuilding deals while they await refund guarantees and strive for that competitive edge

Four LNG carrier newbuilding berths have been secured by John Fredriksen’s interests for his gas shipping vehicle — Flex LNG — as the sector’s order tally climbs in the first quarter.

TradeWinds understands that Fredriksen is behind two vessels confirmed by Hyundai Heavy Industries early this week.

But in addition, the Norwegian shipping magnate is also the name that signed up to a pair of vessels at DSME last week.

The orders will bring Flex's owned LNG carrier fleet to 10, with the company's chartered-in vessels adding to this tally.

Oslo-listed Flex did not respond to requests for confirmation and clarification.

Last week, TradeWinds reported that DSME had notched up two LNG carriers for the account of Pantheon sister company Alpha Shipping & Trading, which has confirmed a pair of VLCCs at the South Korean yard in the past few days.

Sources close to the Kanellakis-controlled outfit price the M-type, electronically controlled, gas-injection (ME-GI) newbuildings at around $185m each. They indicate that the ships, which mark a return to the LNG sector for the Greek owner, have been contracted without employment.

During the past 10 days, all three of South Korea’s big shipbuilders — DSME, HHI and Samsung Heavy Industries — have announced LNG carrier orders without naming the parties contracting the ships. This has prompted a flurry of talk about the companies behind these new contracts.

Aside from DSME and HHI, SHI also revealed it had landed an order for one LNG carrier newbuilding, with an option on a second.

TradeWinds has learned this business is for a Greek shipowner, which is believed to be Christos Economou-controlled TMS Cardiff Gas. The order was signed in January.

One newbuilding market observer said the delay in yards securing refund guarantees for vessels may be a factor in the time lapse between orders being signed with owners and official announcements emerging from the shipbuilders, along with owners’ reluctance to put their names to new contracts.

Brokers also said competition appears fierce among owners looking to supply vessels for what is widely perceived to be a looming shortfall of LNG carriers in the period up to 2020.

LNG carrier orders announced in the first quarter of this year already are stacking up at more than half the total number of ships signed last year, although it is not entirely clear which contracts were signed at the close of 2017.

Aside from four vessels for Flex, Cardiff has also inked a similar number, Alpha and BW Gas have ordered two, Sovcomflot (SCF Group) has secured one — concluded in late December — and Maran Gas Maritime has penned one plus a floating storage and regasification unit.